Why Citigroup (C) Stock Is Spiking Today

Citigroup (C) is rising after the company reported better than expected earnings for the 2014 second quarter.

NEW YORK (TheStreet) -- Shares of Citigroup Inc. (C) are higher by 3.17% to $48.49 on heavy volume in early afternoon trading on Monday.

The company saw a rise in its stock after reporting better than expected revenue from equity and fixed income trading for the 2014 second quarter, which had declined 15% to $2.9 billion, but did not decline the 20% to 25% decline the company previously anticipated, CNBC reports.

Citigroup's net income was down 96% to $181 million, or 3 cents per share, versus $4.18 billion, or $1.34 from the 2013 second quarter.

However, when excluding special items net income was $1.24 per share, beating analysts' expectations of $1.05, CNBC added.

Additionally, Citigroup announced today that it has reached a $7 billion settlement with the Department of Justice regarding an investigation into the mortgage securities the bank sold leading up to the financial crisis.

Separately, TheStreet Ratings team rates CITIGROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate CITIGROUP INC (C) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."